A mutual fund publication is promoting the idea that ultrasafe instruments such as bank deposits aren't the only place to stash emergency cash.

While investors should keep one month's worth of living expenses in a safe, low-yielding investment, it may make sense to keep the balance in uninsured investments such as mutual funds, according to an article in the July 26 issue of Value Line Mutual Fund Advisor.

The monthly newsletter, published in New York, reaches more than 10,000 investors.

Though an emergency could force investors to sell at a loss, that would be preferable to allowing money to "languish in a low-yield account," the article says.

"It's really not as radical as it might sound," said Steve Savage, the editor of the newsletter.

"People earmark money for emergencies, and just sit on it. Maybe you need it in one year, five years, 10 years - or maybe you don't ever need it," Mr. Savage said.

"We're not trying to knock banks," he continued.

"There are investment opportunities within banking institutions that would suit those needs perfectly well."

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